Wired for success: the psychology of entrepreneurship as a lever for growth in franchising

Madrid, December 9, 2025

In the franchise ecosystem, growth is not measured by the number of outlets opened, but by the human and professional quality of the people who operate them, because they are the ones who sustain and multiply the value of the brand.

And the data proves it. The AEF 2024 report reflects a solid sector: more than 1,384 brands, 78,000 points of sale and 318,000 jobs. Despite the structural strength of the model, the system has recorded a significant decline in franchised units and several thousand fewer jobs.

This is not merely a cyclical adjustment. Behind these figures lies a much deeper and more human cause: the lack of alignment between the individual and the system. Most franchises that close within the first three years do not fail because of the business model, but due to the psychological and functional mismatch of those who operate them.

Scientific literature on franchising also agrees that the success or failure of a franchised unit depends largely on the behavior, psychological fit and functional adequacy of the franchisee, rather than on strictly structural variables of the business model.

Various studies have shown that factors such as adherence to rules, the relationship with the franchisor, management capability and the franchisee’s emotional stability are significant predictors of performance and network sustainability (Kaufmann & Dant, 1998; Michael, 2003). Likewise, research on franchise closures and conflicts shows that the most frequent problems originate in mismatches between the franchisee profile and the system’s requirements, rather than in operational failures of the model (Frazer & Winzar, 2005). Taken together, this evidence reinforces the need to assess not only the candidate’s financial capacity, but also their psychological and competency profile, as proposed by the Functional Psychological Alignment (APF®) approach, aimed at predicting the entrepreneur’s real performance within a regulatory, relational and highly structured environment.

Faced with this reality, the question is not how many outlets to open, but how to ensure that each person fits the system. And this is where the psychology of entrepreneurship provides a scientific answer.

From intuition to method: the psychology of entrepreneurship applied to the franchise system

This is where entrepreneurship psychology becomes a competitive advantage.

The APF® (Functional Psychological Alignment) model represents a paradigm shift: a psychological due diligence applied by teams specialized in organizational and entrepreneurship psychology, which makes it possible to rigorously measure the degree of fit between a person and the real demands of the system.

APF® is not based on intuition or generic personality tests. It is a professional methodology, applied exclusively by licensed PsEC® psychologists (Expert Psychologists in Coaching), combining validated psychometrics, functional interviews and analysis of critical competencies for franchise success. Its variables include:

Entrepreneurial style: visionary, executor, adaptable or reactive.
Level of autonomy and tolerance for rules.
Emotional intelligence and resilience.
Tolerance for uncertainty and achievement orientation.
Values, motivations and communication style.

The result is a clear, visual and actionable report that shows the degree of alignment between the individual and the business model, and indicates whether they will operate sustainably within the system.

Scientific evidence supports this approach. Recent studies on the Big Five Personality Traits show that successful entrepreneurs share specific traits: high openness to experience, strong conscientiousness and high emotional stability.

Other research highlights the relevance of resilience, self-motivation and tolerance for ambiguity as predictors of success in uncertain environments. Modern psychometrics makes it possible to measure all of this with precision, becoming a talent management tool, not just a selection tool.

But understanding the tool is not enough: one must understand why it is so necessary. What is at stake is not only system efficiency, but the very integrity of the brand.

The invisible risk of placing your brand in “unprepared” minds

Franchising is a model of structured collaboration: the success of one depends on the other.

When the franchisee’s profile does not fit the logic of the system—due to excessive autonomy, lack of adaptability or misalignment with network values—conflict is inevitable.

Initial enthusiasm turns into burnout, and the relationship, which was meant to be collaborative, becomes frictional.

The impact does not remain confined to a single outlet. Each mismatch erodes the customer experience, disrupts network coherence and compromises the franchisor’s main asset: the brand.

Because a franchise does not break down in the profit and loss account, but in the psychology of its members.

For years, franchisors have invested in manuals, audits and marketing, but very few have invested in understanding how the franchisee is “wired”.

Selection is done by gut feeling, by feeling or by urgency of expansion. (And I always wonder: what does a future franchisee smell like?).

Paradoxically, in the world of venture capital, no investor would finance a project without evaluating the founding team.

And yet, investment funds—no matter how large—work with a replaceable resource: money. If an investment goes wrong, they can expand it, hedge it or offset it with another operation.

Franchises do not. The resource a franchisor invests is not financial; it is identity and reputation: its brand.

Your brand and your reputation in minds not wired for entrepreneurship

And a damaged brand cannot be recapitalized; it erodes, drags down the entire network and compromises the system’s most strategic value: trust.

In other words, if investment funds evaluate the entrepreneur before investing knowing that their resource is replaceable, how could a franchise not do so, when its essential asset does not allow for replacement?

The next step is to understand which specific aspects determine that fit. Across the evaluations carried out, the APF® model has identified the human factors that separate sustainable franchisees from those who are not.

The key dimensions of the functional franchisee

Franchises do not fail due to a lack of manuals, but due to a lack of fit between the individual and the system’s culture.

Across dozens of evaluations conducted in Spanish networks, the APF® model has identified a minimum set of critical dimensions for franchisee success.

And this is where head office managers often recognize themselves, because these are the same competencies they expect to see reflected across their network.

1. Functional competencies

Strategic vision: understands that they are not buying a job, but a scalable model.
Management capability: organizes resources, prioritizes and executes methodically.
Assertive communication: conveys and listens without damaging the relationship with the franchisor.
Analytical thinking: makes decisions based on data, not just impulse.
Orientation to rules: respects processes while contributing operational intelligence.

2. Psychological and motivational traits

Tolerance for uncertainty: navigates changing environments without paralysis.
Resilience: recovers quickly from mistakes.
Achievement motivation: does not seek absolute independence, but shared excellence.
Network mindset: understands that individual success reinforces the collective brand.
Values alignment: operates coherently with the brand’s culture.

These factors are not theoretical: they have real consequences for network performance. And when they are measured, the results speak for themselves.

From silent failure to measurable success

Sector statistics confirm it: more than 40% of closures in the first three years have a human misalignment component.

And what is most worrying is that most of these closures do not appear in official statistics. They are disguised as “transfers”, “resignations” or “reconversions”. But behind them there is often a story of frustrated expectations, lack of psychological support and broken trust.

When an evaluation model such as APF® is applied, the difference is visible and measurable.

A franchisor that has been using the system for two years summarizes it as follows:

“When we implemented APF®, we clearly noticed that the average network turnover was reduced by just over 30%, and franchisee retention increased by nearly 25%, which translated into significant operational savings by avoiding replacement costs, training and premature revenue loss.”

In addition, the APF® report is not only applied during initial selection: it is also used with active franchisees who are not reaching optimal performance.

The tool allows comparison of the psychological and competency profiles of top-performing franchisees—in terms of average ticket, conversion rate, operational compliance or staff turnover—with those experiencing difficulties.

At the same time, it analyzes the internal dynamics of each outlet, observing how leadership, communication and team management impact results.

From this analysis emerges an individualized development plan, which addresses not only the franchisee’s profile, but also their ability to lead and unify the team.

The result is not only increased efficiency, but a structural strengthening of the network: lower turnover, fewer disputes and stronger relationships between franchisor and franchisees.

Behind these numbers lies something deeper: the way each person is built on the inside. That invisible structure—that psychological wiring—explains why some thrive in networks while others burn out.

“Wired for Success”: how the entrepreneurial franchisee is wired

Each person arrives at entrepreneurship with a unique “wiring”: their way of processing uncertainty, reacting under pressure, and interpreting control and autonomy.

The ideal franchisee is not the brightest or the most independent, but the one wired to cooperate within a structured system.

They understand that rules do not limit, but guarantee consistency; that the brand is not an umbrella, but a shared responsibility.

Entrepreneurship psychology teaches us that success does not lie in changing people, but in aligning their energy with the architecture of the system.

And this understanding of human behavior not only improves relationships within the network: it has become a measurable competitive advantage.

Behavioral science as an expansion strategy

Integrating entrepreneurship psychology into expansion processes is not a luxury; it is a strategic decision.

Banks have understood this. Investors too.

In the new franchising ecosystem, the most valuable asset is not square meters, but psychological human capital.

The future belongs to networks that understand that the brand is replicated in people, not in outlets.

To those that measure, develop and support. To those that use science to protect culture and ensure system sustainability.

Because, ultimately, there is no sustainable growth without human growth.

Conclusion

Expansion without alignment is growth without direction.
Psychology applied to entrepreneurship proves that it is not a trend, but a precision tool for building sustainable networks.
In a market where speed matters, science becomes both the best brake and the best accelerator: a brake against error, an accelerator of talent.

Investing in people is not an expense: it is protecting the brand, the culture and the future of the network.

Editorial note: The APF® model (Functional Psychological Alignment) has been developed by Mundo Franquicia Emprende and Growth Advisors, and is applied by accredited professionals in entrepreneurship psychology. This article summarizes its conceptual framework and the evidence observed across different franchised networks in Spain.